The federal government grants in Nigeria are important intervention projects aimed at supporting the economy by providing funds directly to the people who need them. Some of these grants are designed to alleviate the suffering caused by poverty, and others are aimed at injecting funds into micro, small and medium scale enterprises.

When these businesses are buoyed by federal funds, they can expand their operations. Expanding their operations benefits the country because it usually means employing more people, and ensuring the supply of necessary commodities.

This shows that the federal government of Nigeria is alive to its responsibilities of supporting the economy, and ensuring the survival of small businesses because they have the most impact on the people directly. The federal government of Nigeria has graciously provided several non or low-interest loans, so as to keep all sectors of the economy productive.

List Of Federal Government Grants In Nigeria

1. Central Bank of Nigeria (CBN) NIRSAL COVID-19 Loan

The Central Bank Of Nigeria NIRSAL COVID-19 Loan is specifically set up to help business owners whose businesses were adversely affected by the recent Covid 19 epidemic which led to the country being locked down. As you may know, the Covid 19 epidemic has wrecked havoc in business all over the world, some companies were forced to close down, while others still only manage to offer skeletal services.

While some companies have recovered from the impact of the lockdown, some others have not. Those companies who have not recovered from the impact of the lockdown are the targets for this loan.


The Central Bank of Nigeria’s Agric, Small, and Medium Enterprise Scheme is a loan programme that is designed to assist Small and Medium scale enterprises that are involved in agricultural-related businesses in Nigeria. This grant is open to farmers, and all others who work in the value chain of agriculture, including suppliers of agricultural implements, distributors of farm produce, people who provide loans to farmers, and those who process and package the farm produce.

The loan is without interest and is available to people in all the 36 states of the federation.

3. NYSC / Graduates CBN Loan

The NYSC/ Graduates CBN Loan is a grant that is specifically set up by the federal government through the CBN in order to provide funding that can enable fresh graduates go into business, or to expand existing businesses. This is one of the most effective federal government grants in Nigeria because the loans are provided to fresh graduates, some of whom have spent the last few years studying business at tertiary institutions.

Some of these fresh graduates are visionaries with fresh ideas that can be translated into business excellence. They can establish startups that can quickly become profitable, and that become employers of labour; thus directly impacting the economy.

This is an initiative of the federal government to encourage entrepreneurship among the educated youth in the country.

4. Npower GEEP Loan

Npower GEEP Loan is a federal government grant created for the youth. Npower is a government scheme that was set up to engage the youth on a temporary basis; while enabling them to put the skills they have acquired at school.

This scheme is only temporary, and the pay is quite minimal; therefore there is a need to empower the participants so that they become self-sufficient after the tenure of their participation in the programme.

The Npower loan was created to enable outgoing participants of the Npower programme, to enable them to set up businesses. That way they will continue to be productive, rather than return to the streets, where they can pick up vices.

5. NYIF Loan

The Nigeria Youth Investment Fund (NYIF) is a federal government initiative designed to provide funds to benefit young people who have scalable business ideas. These young people can then take the money; build their business ideas into real businesses that employ people, thus reducing both unemployment and poverty.

6. NHF loan from Federal Mortgage Bank of Nigeria

The federal government of Nigeria recognizes that housing is a core need. This is one of the biggest challenges facing the people of Nigeria; and without housing, it is impossible for people to live well, and be productive to society. That is why the government has initiated this loan, as an offshoot of the National Housing Fund (NHF), so that it can help people have affordable housing.

This loan is only applicable for the purpose of housing; please note that any other purpose is against the tenets of its creation. Furthermore, the grant is only open to people earning below a certain level.

7. TraderMoni Loan

TraderMoni Loan is a small scale loan that is made available by the federal government of Nigeria. The purpose of this loan is to provide finance to small scale traders in various markets all over the country.

This loan is without interest, and the money is quite small (only about #10,000 to #100,000), but the fund is very vast, and it can make a huge impact because the money can be paid to virtually every trader in the country.

When every trader in the country is empowered with this money, it can go a long way to help them increase their output. When they have more output they will make more profits, and be able to take better care of their families.

8. FarmerMoni Loan

FarmerMoni Loan is an initiative of the Federal government of Nigeria; which recognizes the need for small scale farmers in the country to have financial support because of the unpredictable nature of their work. Sometimes, farmers are not able to make any profit because the weather is unfavorable. Other times, there may be crop failure resulting from disease or any other factors.

Even without such disasters, farmers can still experience difficulty because the roads are bad, and they may not be able to get their produce to the markets on time. All these factors make it necessary to provide financial support for farmers. This loan is an initiative of the federal government in collaboration with the Bank of Industry.

9. MarketMoni Loan

MarketMoni is another federal government initiative that is designed to impact the economy directly, by providing funds for petty traders who constitute a large part of the country’s population.

This is very similar to Tradermoni because it covers people that fall under the same demographics; however, while Tradermoni is directly handled by the federal government, MarketMoni is handled by the Bank Of Industry.

The Bank Of Industry funds small market men and women directly through this scheme, and this programme is open for all small scale traders in all 36 states of the federation.

What Is A Grant?

Grants are described as a means of funding a proposed project either by cooperate body or an individual, it can also be seen in the light of aid given to the able body and right-thinking business models to implement or support their business so as to provide cushion to such an individual, this fund is majorly targeted at the upcoming entrepreneur as a means of showing support by the government to such person. Federal Government grants are the amount of money given out as a form of assistance to an individual, organization small-scale business, etc. for a particular purpose or usage.

Differences Between Grants And Loan

Most time, the majority are scared of taking a grant all in the name of being scared of paying a return or interest on given money, most people even hear of grants but keep a deaf ear to it all because they see grants as a loan. Some even go as far as thinking grants are a form of a cooperative society form. So many have missed the opportunity that should have benefitted their dreams and career as a result of ignorance.

Grants are quite different from other kinds or types of Federal government financial assistance, grants are non-refundable assistance while other forms of financial assistance are refundable and at times it attracts an additional amount of interest for a specific period of time. The importance of a Federal grant is to help some schools to improve their facilities, help the non-profit organization, and also to help researchers to further on their research, also for the completion of projects. There are different types of Federal government grants with their requirements and also their method or mode of application. Below is a list of some of the federal government grants in Nigeria and how to apply for it.

Major Purpose Of A Grant

Given grant is not a ceremony the government which to just celebrate neither is it a culture they must do inculcate for no just course. Rather it is usually a form of reducing poverty in a nation, by proving means for able hands to work and give back to their nation. It is impossible for the government to start sharing money in the street or start giving gifts to everyone rather than the means to get across to able and thinking individuals is giving a grant. Also, it helps reduce the crime rate, hands that are supported by grants and business mentoring will find it hard to indulge in any form of atrocities that may arm fellow countrymen.

Major Challenges Of A Grants

The only problem the system of giving grants is having up to date is the corrupt system. Most means by which an individual should take up a grant has been corrupted and bastardized, often, it involves collecting a fee from an interested fellow, some officials go as far as asking the interested individual to promise to share the grants with them immediately they access the grants which is really a discouragement to many individuals.

Possible Way Out

The only system the government can put in place to avoid any form of corrupt practices in the method of accessing grants is to digitalize the process and procedure, makes all the procedure internet base, no need to judge users by name or location rather by ideas, dreams, and readiness to improve on existing marketing strategies. This might not be able to cure-all, but it promised to reduce all to barest length.


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